diff --git a/README.md b/README.md
index a675e2ccd046..625bea9e7f64 100644
--- a/README.md
+++ b/README.md
@@ -194,7 +194,8 @@ ng test
 
 Tests will execute after a build is executed via [Karma](http://karma-runner.github.io/0.13/index.html), and it will automatically watch your files for changes. You can run tests a single time via `--watch=false` or `--single-run`.
 
-You can run tests with coverage via `--code-coverage`. The coverage report will be in the `coverage/` directory.
+You can run tests with coverage via `--code-coverage`. The coverage report will be in the `coverage/` directory. 
+If you would like to exclude files in addition to the default see how to update your `karma.conf.js` [here](https://github.com/marcules/karma-remap-istanbul/issues/26).
 
 Linting during tests is also available via the `--lint` flag. See [Linting code](#linting-code) chapter for more information.
 
diff --git a/packages/@angular/cli/blueprints/ng2/files/package.json b/packages/@angular/cli/blueprints/ng2/files/package.json
index 9d072447a11c..feaf84a42618 100644
--- a/packages/@angular/cli/blueprints/ng2/files/package.json
+++ b/packages/@angular/cli/blueprints/ng2/files/package.json
@@ -37,7 +37,7 @@
     "karma-chrome-launcher": "^2.0.0",
     "karma-cli": "^1.0.1",
     "karma-jasmine": "^1.0.2",
-    "karma-remap-istanbul": "^0.2.1",
+    "karma-remap-istanbul": "^0.3.0",
     "protractor": "~4.0.13",
     "ts-node": "1.2.1",
     "tslint": "^4.3.0",